Sentences with phrase «cost of higher volatility»

There is a general (and correct) perception that stocks generate higher long term returns than bonds at a cost of higher volatility.

That means owning more stocks, which offer the potential for growth at the cost of higher volatility.

Not exact matches

«We believe it critical for a listing exchange to ensure a high - quality displayed quote to reduce the cost of capital and share price volatility for its issuers, and in the absence of broader market structure reform, exchange - paid quoting incentives are a necessary mechanism in a highly fragmented US marketplace to support liquidity for listed companies,» Cunningham said in a letter to clients emailed to Business Insider.

Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.

We don't view bitcoin as a currency due to its high transaction costs, tremendous price volatility and inability to be a true store of value

One thing investors have learned the hard way is that volatility has a very high cost of carry.

These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value of our goodwill or other intangible assets; a failure of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

Let's look at the costs of an actively managed portfolio designed by a financial advisor to provide higher returns with lower volatility than the corresponding benchmark.

In this paper, Yang and his colleagues show that selling price data increases volatility and increases the cost of capital (which typically indicates that investments are higher risk).

For the most part, lump sum investing outperformed dollar cost averaging two out of every three times, «even when results are adjusted for the higher volatility of a stock / bond portfolio versus cash investments.»

And while you might enjoy a higher return from value stocks or small - cap stocks, it could come at the cost of more volatility.

It has outperformed the S&P 500 by an average 2.9 % per year since 1994, although it has done so at a «cost» of higher volatility.

Let's look at the costs of an actively managed portfolio designed by a financial advisor to provide higher returns with lower volatility than the corresponding benchmark.

Allocations closer to 20 % may be viewed as offering a greater balance among the benefits of diversification, the risks of currency volatility and higher correlations, investor preferences, and costs.

Stocks of small companies vary significantly in price volatility, are more prone to defaults, and have high trading costs.

Investment risk could be interpreted as the probability of suffering a loss, lower returns, higher volatility resulting in additional costs, etc..

These considerations include changes in exchange rates and exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, foreign government restrictions, less government supervision of exchanges, brokers and issuers, greater risks associated with counterparties and settlement, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.

Even if the market is moving upwards, if volatility is elevated the higher costs the insurance company must pay as a result can result in reduced cap and participation rates, reducing the amount of interest credited to your index - linked subaccounts.

(xiv) Many believe that a steady $ $ dividend in a period of stock price volatility, allows the reinvested dividend to purchase more shares when the stock is down, and less shares when the stock is high, producing extra returns from a dollar - cost - averaging effect.

Daniel and Moskowitz (2013) and Barroso and Santa - Clara (2014) show that extreme volatility tends to be predictive of subsequent momentum crashes and Granger et al. (2014) show how optionality imbedded in a rebalancing strategy is a timing mechanism that can help generate a higher return and a higher Sharpe ratio, albeit at a cost of altering higher moments.

Low beta or low volatility strategies have lower absolute risk than the market, but typically come at the cost of higher relative risk and low vol strategies tend to have higher tracking error, which represents the risk that the strategy deviates from the market for extended periods of time.

Investing in emerging markets may involve greater risks than investing in developed countries, including the possibility of industry concentration, nationalization, taxes and transaction costs, lower trading volumes, and less liquid securities, resulting in higher volatility.

Implementation issues encountered in designing low - volatility investment strategies include unwelcome concentrations in certain regions, countries, and economic sectors; the combination of low liquidity and high turnover, raising implicit trading costs; and high tracking error relative to broad capitalization - weighted market benchmarks.

Low beta or low - volatility strategies have lower absolute risk than the market, but typically come at the cost of higher relative risk.

Stocks have higher expected returns than bonds, but at the cost of higher short - term volatility, and

They may want to manage volatility by investing in less - risky, high - quality companies rather than in the market as a whole, even at the cost of slightly lower returns.

But seriously, I may learn to love FFY eventually: Despite Fyffes» higher earnings volatility, a re-merger of the two companies would make perfect sense in terms of cost - cutting, revenue synergies, and improved investor sentiment.

It turns out that opting for high - yield stocks by industry tends to give investors the benefit of diversification (reduced volatility) without costing much on the return front.

Other strategies tend of be sub-optimal, involving greater portfolio volatility and risk — and accompanied by higher costs in term of expenses, taxes, time commitment, and stomach acid.

One problem is dollar cost averaging, where you invest small amounts each month to help smooth out the volatility of buying at extreme highs and lows.

Though static allocation of VIX futures can reduce portfolio volatility and offer downside protection compared with the broad - based, unhedged S&P U.S. High Yield Corporate Bond Index, it can drag down portfolio performance significantly, due to the high cost of rolling VIX futuHigh Yield Corporate Bond Index, it can drag down portfolio performance significantly, due to the high cost of rolling VIX futuhigh cost of rolling VIX futures.

The first phase of the EU ETS — from 2005 to 2007 — drew criticism for not achieving substantial cuts in emissions, excessive allowance price volatility and for resulting in windfall profits for some utility firms that received carbon allowances for free but were able to pass through their full cost to consumers in the form of higher electricity prices.

Historically, CNG costs less than gasoline and is very stable compared to the high volatility of gasoline and diesel.

The media outlet indicated that Benke cited the lack of local bitcoin adoption, the high cost of exchanging bitcoin for Ghanaian cedi and the volatility of bitcoin against fiat currencies as the reasons underlying the decision.

«Secondary office markets are experiencing higher levels of investment for just this reason, somewhat greater volatility priced by higher yields, and the ability to accommodate fast - growing companies with a volume of new construction, at costs much lower than that available in the primary downtowns,» according to the Aegon report.